Field of the Invention
The present invention relates to predatory and uncompetitive sales practices and, more specifically, a method and system for identifying, preventing, responding to, and/or discouraging predatory and uncompetitive sales practices.
Background Information
Many retailers use predatory and uncompetitive sales practices to increase their respective market shares. A good or service offered for sale by a retailer for a price less than the retailer's cost of providing said good or service is commonly called a “loss-leader” and is referred to as such herein. Retailers often attempt to attract new customers by marketing loss-leaders, hoping that customers will buy other products that are not discounted in addition to the loss leader. However, predatory and uncompetitive sales practices can also be used by well-funded retailers to drive competitors out of business.
Accordingly, many states have enacted laws to restrict such anti-competitive practices. However, it is often difficult to make out a cause of action under such laws, as many of them require that a potential plaintiff prove that the retailer had the specific intent to injure a competitor's business or to mislead customers. Furthermore, many of these laws do not account for overhead costs that would be common to all retailers and therefore allow for at least some level of anti-competitive behavior.
Additionally, the practice of loss-leading has expanded to retailers selling products and services through online or mobile sales channels, creating further obstacles to legally preventing this type of anti-competitive behavior. For example, jurisdictional barriers often prevent enforcement in the increasingly global online retail market. Accordingly, there is a recognized need for a method and system for discouraging predatory and uncompetitive sales practices that does not require government intervention.